Serbian town in the winter

Serbia Interest Rate

Serbia Interest Rate

Key Policy Rate in Serbia

The Key Policy Rate ended 2022 at 5.00%, up from the 1.00% end-2021 value and down from the reading of 9.50% a decade earlier. For reference, the average policy rate in Eastern Europe was 8.40% at the end of 2022. For more interest rate information, visit our dedicated page.

Serbia Interest Rate Chart

Note: This chart displays Policy Interest Rate (%) for Serbia from 2014 to 2023.
Source: National Bank of Serbia.

Serbia Interest Rate Data

2018 2019 2020 2021 2022
Key Policy Rate (%, eop) 3.00 2.25 1.00 1.00 5.00
3-Month BELIBOR (%, eop) 3.03 1.64 0.90 0.94 4.95

Central Bank holds rates in April

At its 11 April meeting, the National Bank of Serbia (NBS) kept the key policy rate unchanged at 6.50%. It also held the deposit and lending facility rates steady at 5.25% and 7.75%, respectively. The decision marked the ninth consecutive hold and was in line with market expectations.

The Bank highlighted that domestic price pressures eased through February on the back of prior monetary tightening and slowing food inflation. The NBS now sees inflation returning to the 1.5–4.5% target band in May, slightly earlier than previously anticipated. Moreover, it expects inflation to hit the mid-point of the target by end-2024 and remain around that level in the medium term. Nonetheless, the Bank decided not to start its easing cycle due to upside inflation risks, including rising oil prices, heightened geopolitical tensions and global supply chain disruptions.

The NBS did not provide explicit forward guidance. Instead, it reiterated that future decisions will depend on the pace of domestic disinflation and the evolution of both domestic and external inflation drivers. Our panelists project the Bank to cut rates by 50–300 basis points by year-end as price pressures soften. The next meeting is scheduled for 10 May.

Ljiljana Grubic, chief economist at Raiffeisen Research, commented on the outlook: “Though domestic inflation data supports a looming rate cut, the recent US inflation data and market rumours that the Fed might postpone the first rate cut to Q3 (which we also see as increasingly likely), might also influence the local central bank decision. For the time being, we keep our scenario on first-rate cuts in late Q2 at a very gradual pace (-25bp), though will monitor the Fed and ECB statements and respond with new forecasts if needed.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Serbian interest rate projections for the next ten years from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Serbian interest rate.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Serbian interest rate projections.

Want to get access to the full dataset of Serbian interest rate forecasts? Send an email to info@focus-economics.com.

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